MARKET COMMENTARY
Intensifying worries over economic growth in China maintained downwards pressure on natural rubber. On Friday, TOCOM rubber futures tumbled to a fresh 10-month low and were probably on the course to post its biggest weekly decline in over five months. China manufacturing PMI data released earlier today escalated worries over economic growth in the country as it pointed towards a contraction in manufacturing activity at its fastest pace in about six and a half years. In the local market, meanwhile, natural rubber prices continued to trend lower on lackluster demand with quotes for RSS4 in the physical market hitting its lowest level since December last year.
MARKET NEWS
According to International Rubber Consortium, global natural rubber production is expected to decline further in 2015 following the prolonged and strong El Nino.
Central govt. says there is no immediate plan to permit foreign direct investment in the country’s coffee and rubber plantation sector.
The central government not to hike import duty or ban imports of natural rubber, according to government official, despite repeated demands made by the rubber-growing states of Kerala and Karnataka.
Crude rubber inventories at Japanese ports stood at 13689tonnes as of Aug 10, down 1.8 per cent from that on July 31, data from the Rubber Trade Association of Japan showed.
Parliamentary Standing Committee on Commerce has submitted report on Rubber Industry in India and has made a number of observations and recommendations for the development of rubber sector.
Auto sales in China fell 7.1 per cent on YoY basis in July to 1.5 million, the biggest decline since February 2013 according to China Association of Automobile Manufacturers.
Director General of Foreign Trade Pravir Kumar said that existing inverted duty structure in rubber sector is a valid concern and is an issue need to be addressed as it impacts the production domestically and there by exports in any sector.
Union Commerce Minister NirmalaSitaraman said in LokSabha that the government was not considering any proposal to restrict import of rubber or rubber products.
Reuters reports that India’s natural rubber imports in July dropped nearly 15 per cent from a year earlier to 36828 tonnes.
Kerala State government decided to earmark Rs.300 crore for rubber procurement during the current season apart from deciding to bring latex under the procurement scheme and relaxing certain norms for farmers wanting to join the scheme.
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